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A Production Function Describes the Relationship Between the Quantity of Inputs

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A production function describes the relationship between the quantity of inputs used in production and the quantity of output produced.


Definitions:

Gas Stations

Facilities that sell fuel and often other goods and services for motor vehicles.

Automobiles

Motor vehicles with four wheels designed to transport people; cars are the most common form of these.

Annual Crop

Plants that are sown, grow, are harvested, and die all in one growing season or year.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that producers are willing and able to sell.

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